By contrast the ‘summer slump’ saw purchase applications fall 4 per cent from June.
This bucks the trend seen in the first half of this year, when purchase application volumes have consistently shown greater month-on-month growth than remortgages.
Rush to lock into a fixed-rate deal slows
Despite increased remortgage activity, the rush to lock into fixed-rate deals has slowed considerably since June, when 93 per cent of remortgagers opted to fix.
In July, just 89 per cent of homeowners looking to remortgage chose a fixed rate, down 4 percentage points in a month and 2 percentage points year-on-year. In comparison, 95 per cent of purchase applicants opted to fix, up from 94.5 per cent in June and 93.6 per cent in July 2013.
July also saw average fixed mortgage rates continue to rise, according to the broker.
| Average mortgage rates | Jan | June | July | Monthly change* | Change in 2014 to date* |
| 2 year fixed | 3.52% | 3.61% | 3.67% | +6bp | +15bps |
| 3 year fixed | 3.83% | 3.75% | 3.83% | +8bp | – |
| 5 year fixed | 3.92% | 4.14% | 4.20% | +6bp | +28bps |
| 2 year tracker | 2.88% | 2.78% | 2.77% | -1bp | -11bps |
*Changes measured in basis points (bps). Figures accurate as of 20 August 2014.
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